Why Financing or Leasing a Scion is a Good Idea

If you are in need of financing or leasing to acquire a Scion, chances are your dealer will pair you up with Toyota Financial Services, the in-house lender for Scion, Lexus and Toyota vehicles. If you end up financing through Toyota, it’s likely you’d be paying less to borrow than you would through an outside lender. Why? Similar to how your good credit eases your financing rates, Toyota Motor Corporation’s AA credit rating makes it easier for their financing division to pass on its savings to customers. The company’s abundant financial health also means Toyota Financial Services can service riskier borrowers.

This is great for victims of the Great Recession who are emerging out of the financial crisis with ever-steadying incomes, but credit ratings that are slow to catch up. Cheaper financing is also a great way for Scion to draw in younger first-time buyers who may have yet to establish a credit history.

George Borst, an executive adviser to Toyota Motor Credit told Bloomberg, “Our funding cost is less than everybody else.” Why are they less expensive than their competitors? They’ve got $37 billion in the bank, and credit ratings six levels ahead of Ford and seven levels ahead of General Motors.

Bottom Line: If you have bad credit, look at financing or leasing a Scion/Toyota/Lexus product.

via [Automotive News/Bloomberg]